File photo courtesy of SCG Thailand for reference only

The Thai economy is navigating turbulent waters as the nation's employment landscape reveals ominous signs of distress. Recent coverage from the Federation of Thai SMEs highlights a concerning drop in insured workers under Section 33 of the Social Security Act, affecting over 10 million people and signalling troubling times for job seekers.

 

The woes don't stop there. Sangchai Theerakulvanich, president of the federation, points to a surge in business closures and stagnation, reflected in negative financial statements submitted to the Revenue Department. This, he argues, showcases companies' battles to remain afloat amid escalating production costs and global economic strains.

 

“Small businesses in Thailand faced hardships even before the pandemic,” explains Mr Sangchai. “The pandemic amplified these struggles and, just as recovery was within sight by 2022, the Russia-Ukraine conflict and competition from foreign labour, particularly from Chinese firms employing non-Thai workers, compounded the challenges.”

 

One proposed solution lies in overhauling the education system to better align with future industries thriving on AI, digital advancements, and multilingual skills. Mr Sangchai emphasises the need for skill diversification, suggesting languages beyond English should be embraced.

 

The competition is real—in neighbouring countries like China, a massive push for innovation-driven entrepreneurship is underway, while Indonesia’s upskilling initiatives have seen millions reskilled in a bid to bolster national competitiveness.

 

Contrary to many debates that centre on increasing the minimum wage, Mr Sangchai underscores a more pressing matter: workforce quality and productivity. "Raising the minimum wage to 400 baht too soon could lead to job losses. The manufacturing sector may not cope with such costs," he cautions, highlighting the impending threat of automation and AI.

 

Recent insights from the National Economic and Social Development Council (NESDC) support this concern, identifying skills development as crucial for Thailand’s workforce in evolving industries like renewable energy and high-tech manufacturing.

 

However, despite new industries promising over 170,000 jobs, a significant dependency on foreign skilled workers poses a hurdle. This reliance is reflected in the 2023 IMD Digital Competitiveness Ranking, where Thailand's digital readiness lags behind, prompting calls for a focus on STEM education.

 

Amidst these complexities, external factors add to the uncertainty. Trade protectionism, particularly from the US, poses potential risks to exports and, by extension, employment. Furthermore, Thailand's standing in human trafficking reports raises questions about its global trade reputation.

 

Unemployment figures for 2024 have risen slightly to 1%, affecting over 402,000 individuals, despite a notable increase in non-agricultural sector jobs. As Thailand charts its path forward, balancing tourism allure, industrial advancement, and workforce development will be pivotal in overcoming these economic hurdles, reported Bangkok Post.

 

-- 2025-03-17

 

 

If you look around there is not so much poverty as they claim.. Everybody has work, drives in n ice cars, with many holidays, and crackdown on foreign workers, which are already very difficult to find as work permits and the labour protection prevents people to come and work. and be fair.. there are teachers or classroom assistents who have to work for 8000 THB a month.. No wonder they hardly can get anybody. Last month there was a job available for a foreign teacher, who had to be fully classified and work in a school for 5000 THB a month.. Foreigners will line up for jobs like this. Anyway.. the companies don't want to pay more because of the profit, but with less income and rising prices people can't buy much and the companies are compensating it with higher prices as their profit is most important and people buy less and and so everything is going down and down... The greed will destroy  

If you look around there is not so much poverty as they claim

 

Maybe a trip to the opticians is in order ?

8 minutes ago, ikke1959 said:

drives in n ice carsEverybody has work, ,

 

Almost all cars are on credit.

With the Thai Gov going full ahead with casinos, I sent a msg to a Thai lady this morning suggesting she look into schools (offering certification) for "dealing cards".  I know in Las Vegas this can be a good job to tied one over during a downturn or while waiting on a better job.

 

I searched google and it showed a few classes (on FB and other sites).  No casinos open yet but possibly something a lowly paid Thai can work towards.

"Grim Employment Prospects Loom Over Thailand"

 

So, will the (official) unemployment rate climb above 2 percent? 😜 

I hope that some of us not sending remittance (or less than usual) to Thailand for use in the local economy has contributed to this dilemma, then may the TRD will wake up....who am I kidding....TIT  

2 hours ago, watchcat said:

 

Almost all cars are on credit.

and that need to be paid for too

2 hours ago, JoePai said:

If you look around there is not so much poverty as they claim

 

Maybe a trip to the opticians is in order ?

No need.. I live in the rural area and I see poverty.. and the worst even is that today we heard that employees in Tops here are being paid by day 350 THB.. holiday or day off no payment... In almost all countries they use monthly payment.. Why not in Thailand. pay everybody at least 13k a month working not more than 9 hours a day and with at least 1 day off not included the official holidays...Than still don't earn much but it would do the economy much better than keeping them on 350 THB a day .... Holidays are paid and see what will happen... 70% of the holidays will be cancelled.. also much better for the economy

2 minutes ago, ikke1959 said:

and that need to be paid for too

 

Yes and how thai people manage this (mostly they dont and the car gets repossessed)

3 hours ago, webfact said:

Contrary to many debates that centre on increasing the minimum wage, Mr Sangchai underscores a more pressing matter: workforce quality and productivity. "Raising the minimum wage to 400 baht too soon could lead to job losses. The manufacturing sector may not cope with such costs," he cautions

 

Dear PM - listen to this man.

 

 

32 minutes ago, ikke1959 said:

No need.. I live in the rural area and I see poverty.. and the worst even is that today we heard that employees in Tops here are being paid by day 350 THB.. holiday or day off no payment... In almost all countries they use monthly payment.. Why not in Thailand. pay everybody at least 13k a month working not more than 9 hours a day and with at least 1 day off not included the official holidays...Than still don't earn much but it would do the economy much better than keeping them on 350 THB a day .... Holidays are paid and see what will happen... 70% of the holidays will be cancelled.. also much better for the economy

So why did you say "is not so much poverty  as they claim " ?

4 hours ago, JoePai said:

If you look around there is not so much poverty as they claim

 

Maybe a trip to the opticians is in order ?

Went to Big C this morning... more staff than customers...

5 minutes ago, hotchilli said:

Went to Big C this morning... more staff than customers...

 

Isn't this normal ?

 

When you can’t fail students & Thai teachers even with degrees in English but can hardly speak it you’re surprised! 

a surge in business closures..

-------------------------------------------------------------

Bureaucrats are partly blame for that; keen to bust and close "nominee business".

Their empty public stance getting Thai workers out of jobs.

 

 

Bangkok Post - Thailand cracks down on nominee businesses

 

 

 Just left Lotus Tesco here in Ubon and mostly products in the meat/produce/bakery departments are marked down since all Thai's are shopping in local markets and avoiding the high prices.  This has been going on since Covid. My wife was telling me that Thai's on social security get 300 baht and month-How can anyone live on that?? Poverty is everywhere in Ubon-Even the local Monk's are not being blessed like they use too.  Very Sad.

11 hours ago, ikke1959 said:

Everybody has work, drives in n ice cars, with many holidays,

 

All paid for on the never-never.

 

Nobody walks in and pays cash for a car here and I mean nobody.

11 hours ago, webfact said:

the Russia-Ukraine conflict and competition from foreign labour, particularly from Chinese firms employing non-Thai workers, compounded the challenges.”

 

Why not just blame Trump while you're at it.

 

Hasn't the Russian conflict t helped Thailand with the huge influx of Russians spending their money here for the last 3 years. 

14 hours ago, watchcat said:

 

Isn't this normal ?

 

All the big concerns like supermarkets, shopping malls etc have staff sitting around, hiding in corners with their phones or basically standing there like dummies doing b….r all. I’ve been in business all my life and cannot understand the reason. Surely having competent staff with decent wages is advantageous ? Educate the young, change the archaic Thai system to bring them up to date with the rest of the world.  Thailand is failing in so many ways, and as with pollution,´poverty, death trap roads and a rotten to the core police force, Thailand s future is becoming more and more bleak.

19 hours ago, webfact said:

One proposed solution lies in overhauling the education system

good luck with that one ...  

send them all to work in Pattaya and Nana ....

15 hours ago, watchcat said:

 

Isn't this normal ?

 

Absolutely, keeping unemployment numbers down and staff on peanuts for a salary..

That's if you can believe the unemployed figures, probably massaged more than a backpacker in Pattaya

17 hours ago, ikke1959 said:

No need.. I live in the rural area and I see poverty.. and the worst even is that today we heard that employees in Tops here are being paid by day 350 THB.. holiday or day off no payment... In almost all countries they use monthly payment.. Why not in Thailand. pay everybody at least 13k a month working not more than 9 hours a day and with at least 1 day off not included the official holidays...Than still don't earn much but it would do the economy much better than keeping them on 350 THB a day .... Holidays are paid and see what will happen... 70% of the holidays will be cancelled.. also much better for the economy

 

Thai labor laws... Standard work week is 48 hrs @ 6 x 8.

Wages typically paid monthly.. do Tops employees actually get paid daily ?

11 minutes ago, Ralf001 said:

being paid by day 350 THB.. holiday or day off no payment

 

I don't believe this  .....   this is not in line with Thai labour law requirements.  They would be breaking the law.

 

someone is telling porkies .... 

55 minutes ago, geisha said:

All the big concerns like supermarkets, shopping malls etc have staff sitting around, hiding in corners with their phones or basically standing there like dummies doing b….r all. I’ve been in business all my life and cannot understand the reason. Surely having competent staff with decent wages is advantageous ? 

Agreed. The Costco chain pays quite well and is highly productive. 

 

Costco is the world's largest retailer of beef, poultry, organic produce, and wine, and just under one-third of American consumers regularly shop at Costco warehouses. Costco is ranked #11 on the Fortune 500 rankings of the largest United States corporations by total revenue.

20 hours ago, webfact said:

One proposed solution lies in overhauling the education system to better align with future industries thriving on AI, digital advancements, and multilingual skills. Mr Sangchai emphasises the need for skill diversification, suggesting languages beyond English should be embraced.

Has to be one of the dumbest clueless most naive comments.

45 minutes ago, Ralf001 said:

 

Thai labor laws... Standard work week is 48 hrs @ 6 x 8.

Wages typically paid monthly.. do Tops employees actually get paid daily ?

Tops Phetchaburi pays daily wages, but I don't know if they got paid every day...Many employees have left, so something is not good

20 hours ago, webfact said:

Unemployment figures for 2024 have risen slightly to 1%, affecting over 402,000 individuals

Is this for the whole of Thailand of just Surin?

 

By my standards half the males are unemployed in LOS.

33 minutes ago, Tom100 said:

Agreed. The Costco chain pays quite well and is highly productive. 

 

Costco is the world's largest retailer of beef, poultry, organic produce, and wine, and just under one-third of American consumers regularly shop at Costco warehouses. Costco is ranked #11 on the Fortune 500 rankings of the largest United States corporations by total revenue.

 

Why oh why do you have to bring the US into this article  ?

it's solely about Thailand's unemployment ....   nothing, absolutely nothing to do with the US Costco business model.

 

The problem here is different,   the big shops like your Tesco, Big C, Power Buys, Home Pro etc ...  employ far too many staff .... they could cut them by 50% and still have them standing around doing nothing.

 

The problem here is consumer numbers are down, they are the worst numbers ever recorded except when COVID-19 was in progress. 

The Thai people and expats are spending less,  so if no customers then staff are not required.